Six int'l development banks pledge $2.2 bln for Mekong Delta

Six development banks including ADB, KEXIM, AFD, KfW, JICA, and WB on Tuesday committed to provide $2.2 billion worth of ODA and preferential loans to 20 projects in Vietnam’s Mekong Delta.

The funds will go to 20 projects aimed at sustainable development and climate change adaptation in the years 2021-2025, the government stated.

Minister of Planning and Investment Nguyen Chi Dung told a conference that witnessed the fund commitment that the aid would be a catalyst to investment from private domestic and foreign firms.

Mekong Delta, Vietnam’s agricultural hub and one of the world's regions most vulnerable to climate change, has recently received great attention from the government in terms of investment.

Transport infrastructure has for long been a bottleneck to the delta’s development. Prime Minister Pham Minh Chinh said top investment priority is being given to the region.

Mekong Delta will have 400-500 kilometers of expressways by the end of 2026 if capital allocation and construction are on schedule, according to Minister of Transport Nguyen Van The.

“The National Assembly has approved VND86,000 billion ($3.7 billion) in state budget for building expressways across Mekong Delta as a development breakthrough,” The told the conference on announcing development plans for the delta in the years 2021-2030.

A total 120 kilometers of expressways are now under construction in the region. The Ministry of Transport is also researching a railway linking Ho Chi Minh City with Can Tho city.

Within the conference framework, planning documents were awarded to 13 localities within the delta.

Minister Dung said the total budget fund to invest in the region in the years 2021-2025 is about VND422,000 billion. Of this, state budget capital for locally-managed projects is about VND320,000 billion ($18.16 billion), up 23.3% compared to the previous five years.

The money will be spent on key projects like Trung Luong-My Thuan-Can Tho Expressway, Can Tho-Ca Mau Expressway, national highways, airports, water supply, and irrigation systems.

Mekong Delta in southern Vietnam is set to develop several agricultural centers, specialized farming zones and urban areas, with Can Tho city serving as regional hub and key driver.

Under an action plan the Prime Minister signed last Saturday for the development of the delta region until 2030, with a vision to 2045, Mekong agricultural centers would include one in Can Tho associated with the development of logistics services in Hau Giang; centers in Hau Giang and Dong Thap related to fresh water aquatic products, fruit and rice; centers in Kien Giang, Ca Mau and Soc Trang serving seafood production in coastal areas; and centers in Tien Giang and Ben Tre associated with fruit and crops.

Over the next 10 years, with a vision to 2050, apart from expressways, Mekong Delta is set to have four airports and 13 seaports.

The region is 3.96 hectares in area, accounting for 12% of the country’s size and has 17.5 million population or 18% of the country’s total.

It comprises Can Tho, a centrally-administered city, and the 12 provinces of An Giang, Dong Thap, Long An, Tien Giang, Vinh Long, Ben Tre, Tra Vinh, Soc Trang, Hau Giang, Bac Lieu, Ca Mau and Kien Giang.

As one of the largest and most fertile deltas in Southeast Asia and the world, Mekong Delta is Vietnam’s biggest food, fisheries and fruit supplier. It holds 54% of the country’s rice output, 90% of rice exports, 70% of seafood output and 60% of fruit output.